Dessie Duffy
Registered User
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I live in Cork.
I’m new to trading, buying and selling shares.
I wish to buy and sell FTSE stocks using an online trader.
Any advice, guidance or tips is much appreciated.
Thanks,
Des
This is not a true statement. Over a long period of time, the stock market does make you money. But for short term buying and selling, there is a higher risk of loss.Don’t, unless you want to lose money
This is not a true statement. Over a long period of time, the stock market does make you money. But for short term buying and selling, there is a higher risk of loss.
But also there are potential high gains too if you can time it right, but nobody can predict the future.
I use Degiro.
This is not a true statement. Over a long period of time, the stock market does make you money. But for short term buying and selling, there is a higher risk of loss.
But also there are potential high gains too if you can time it right, but nobody can predict the future.
I use Degiro.
Thanks for the advice Zenith.FWIW I have an account with BUX Markets which you can use to trade CFDs/spreadbets. Platform is good, maybe not as feature rich as some of the bigger players, but it does the job. Spreadbetting is likely the best way to go for you as you pay no tax on gains, which means you keep more of your winnings and it removes the complexity of tax returns etc. One interesting side-benefit of the BUX platform is that they do not charge fees (beyond the spread) on positions where no leverage is used, so you can open a position in say the S&P500 and keep it open for a few years, then take any gains without having to pay CGT or other taxes - ie. it can be used to actually "invest" tax free. A bizarre loophole in our tax system.
Now having said all that, you will see this warning each time you login - 72.1% of retail investor accounts lose money when trading CFDs and spread bets with this provider - and you should heed that warning very seriously. As Gordon said above, you are statistically extremely likely to lose money if you use one of these platforms and if you're planning to actualy day trade, as it seems you are, I would bet the odds are significantly higher than that 72% figure.
As a cautionary tale, when I opened my account I said to myself I would use no leverage and would just use it as a tax free way of being exposed to the S&P500. Went great for a year or so, but then I opened a couple of fairly small positions with leverage (20:1) on Tesla and S&P500. They went very well because the market was really only going up, so I opened a couple more, then C19 came along and even though the market only dropped a small number of percentage point because of the leverage I quickly found my account at €0.
My tip would be to open an account with a regular stock broker (DeGiro say) and buy a couple of ETFs like the S&P500 and just leave it to make much better returns than you can make in your bank account. If you need to scratch the itch of 'trading' then only after you have these ETFs in-place so you can see what real investing looks like, open a BUX account and stick €500 in there and proceed to lose it
Thanks AndroidMan, with Degiro are you offered the luxury of setting GTC and Stop Loss points when you are selling stocks?This is not a true statement. Over a long period of time, the stock market does make you money. But for short term buying and selling, there is a higher risk of loss.
But also there are potential high gains too if you can time it right, but nobody can predict the future.
I use Degiro.
One interesting side-benefit of the BUX platform is that they do not charge fees (beyond the spread) on positions where no leverage is used, so you can open a position in say the S&P500 and keep it open for a few years, then take any gains without having to pay CGT or other taxes - ie. it can be used to actually "invest" tax free. A bizarre loophole in our tax system.
My other assumption is that this fairly obvious loophole will not and frankly should not remain open for ever.
I looked at Degiro’s site. They allow you to purchase from worldwide markets I see.Thanks AndroidMan, with Degiro are you offered the luxury of setting GTC and Stop Loss points when you are selling stocks?
Sounds about right. Though if you’re going to day trade, I’d say this extra risk is the least of your concernsIf I lob in €20k to a spread bet account and execute a long unleveraged S&P 500 position, I have the equivalent of magic beans on my balance sheet now if I understand correctly.
Where I had a cash asset, I now have nothing in custody to replace this or any central counterparty guaranteeing the other side. Is there anything ring-fenced at the spread provider level to provide any residue for me if the founder does a runner? No investor compensation scheme?
I think 0% tax in the circumstances seems about right to me.
I try to open an account on BUX markets and it's showing:In saying that, there are plenty of the big players offering spreadbetting, you’re not dealing with some fella on the corner either.
We are temporarily unable to accept applications from Residents of the EU.
Never mind - you need a US addressUsing Degiro - Find it good and offers variety on loads of exchanges - has at least some 'test' before you opt to trade on leveraged/ complex products.
However, looking to invest in Dividend ETFs and see their choice is limited.
Is anyone using Robinhood?
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